More Future Of Pittsburgh Manufacturing

By 2006, the U.S. economy employed about as many workers in manufacturing as in 1950, just over 14 million. And so, looking at manufacturing employment alone leads one to believe that the sector is in decline or at best stagnant.

However, a very different conclusion emerges if you focus on the amount of goods being produced by the manufacturing sector. While employment has changed very little over the past 60 years,[3] output in manufacturing has increased at an annual rate of 3.4%. Manufacturing output in 2007 (the recent peak in manufacturing output) was over 600% higher than in 1950.

Manufacturing already located in Pittsburgh is unlikely to improve efficiency by relocating. Better would be an oversupply of talent that drives down wages. Of course, lower taxes would improve margins and make the industry more export competitive. But I don't understand how it would stimulate significant job creation and provide relief to the army of unemployed. Meanwhile, the din that the labor market suffers from structural issues gets louder.